Now more than ever, Bitcoin ETPs now have more BTC under control on behalf of clients.
Bitcoin (BTC) investment vehicles are posting “huge” inflows this month, a further sign that trader appetite for BTC exposure is on the rise.
Data from tracking firm Arcane Research released this week shows that Bitcoin exchange-traded products (ETPs) now have a record BTC under management.
“Happier Days” for Bitcoin ETPs, as Buyers Flock in
Despite the fact that the price of BTC does not attract buyers more than 50% below all-time highs, not everyone feels risk-averse.
According to data from Arcane, Bitcoin ETPs have seen a flurry of interest from institutional investors both this month and last.
In total, Bitcoin ETPs, which include products like the ProShares Bitcoin Strategy exchange-traded fund (ETF), now have 205,000 BTC under their control, a new record.
“While May’s rally was strong in ETPs, June has seen even happier days!” Arcane analyst Vetle Lunde told his Twitter followers while raising the numbers on June 2: “The first two days of June have seen gigantic net inflows on Purpose, 3iQ Coinshares, and BITO, pushing the global BUM to a new all-time high of 205,008 BTC.”
In the first days of June alone, more than 7,000 BTC flowed into ETPs, almost as much as in all of May, which, in turn, saw an impressive increase of 9,765 BTC.
“There are already massive inflows of BTC into Bitcoin ETFs in June,” reacted Zhu Su, co-founder of asset manager Three Arrows Capital.
Little reprieve for GBTC
Last month, Cointelegraph reported on Grayscale’s ongoing battle to turn GBTC into a Bitcoin spot ETF.
I should be recalled that, according to data from the on-chain monitoring resource Coinglass from May 13, the Grayscale Bitcoin Trust (GBTC) is trading at a discount of almost 31%.
Amid continued market volatility this week, GBTC has seen its nascent recovery fall short of fruition so far. The so-called GBTC premium, which was a discount in practice, has reached quite low levels.
By mid-May, it is noteworthy that GBTC shares were trading almost a third below the spot price of Bitcoin.
Overall, however, GBTC has long been trading at a discount amid attempts by Grayscale to turn it into an exchange-traded fund (ETF).
The Purpose Bitcoin ETF, the first Bitcoin spot ETF to launch globally, meanwhile had $1.294 million in assets under management as of June 3, data from on-chain monitoring resource Coinglass confirmed.
However, the prospects for the Grayscale Bitcoin Trust (GBTC) are bleak.
According to data from Coinglass, GBTC continues to trade at a record discount to Bitcoin’s spot price, currently down 28.68% as of June 3.
By Audy Castaneda
